A red start to the week as the SPY closed red for a third day in a row despite AAPL adding nearly 5%. Most sectors were red led by financials. Futures are red this morning, and debt ceiling talks continue to add uneasiness to the markets. Again, my worry is for some U.S. debt downgrade, which is what ignited a sell-off in the summer of 2011. The longer this drags out, the more concerned I will become.
Yes, I did buy puts on something other then gold and Apple yesterday, and yes it was on one of my more beloved stocks Netflix. Does that mean the stock is done? By no means, it just looked primed to sell-off based on the Emmy news and the sell-off at the open from the $320 all-time high. I am looking for a rapid pullback to the 50dma. If I dont see weakness today, I may close out the puts I have as they expire friday.
UPB has been very bullish on ANGI, a stock that has run quite a bit since it’s ipo, and has been subject to negative reports by Citron and Seeking Alpha. I did some more digging last night and really like this story. Revenue is growin 50-60% YOY despite the company being in business over 18 years. It took them 16 years to get 1 million subscribers and only 18 months to cross the 2 million mark. Folks will cite the negative reviews and the fact that they take money from advertisers to move up listings as well as charging subscribers to use their service. I would argue that most reviews on Yelp and other avenues are manipulated. Having just been married and I can tell you all the vendors gave incentives to write positive reviews. My photographer gave free photo packages for each verifiable positive review you make, which you have to show them. As far as subscribers paying to be a part of Angies list, the cost is minimal and vendors are required to give discounts so its a win win. Either way, with the huge short interest, and revenue continuing to grow, think this stock touches 25+ in the coming days. Nice call on this UPB.
AAPL has been upgraded by at least 5 firms this morning as analysts try to play catchup on Iphone 5c/s sales.
Here are some of the analyst changes for today:
|AOL AOL outlook positive, says JMP Securities|
|After AOL announced that reserved inventory would be available to its Programmatic Upfront clients starting on January 1, JMP Securities is encouraged to hear that five agencies have already committed ad dollars to AOL, with three other agencies considering an Upfront commitment. The firm thinks that a number of changes made by the company will cause its revenue growth and profitability to accelerate, with the company starting to report better results for this quarter. It reiterates a $44 price target and Outperform rating on the stock|
|AAPL Apple price target raised to $525 from $450 at RW Baird|
|Baird raised its price target on Apple following its report of its first weekend of iPhone 5S and 5C sales. The firm raised its estimates as well to reflect higher gross margin assumptions and its positioning over the next twelve months. Baird maintains its Neutral rating due to longer term margin and competitive questions|
|RHT Red Hat outlook still attractive, says Wells Fargo|
|After Red Hat reported lower than expected billings, Wells Fargo still thinks the company is one of the best long-term ideas in software. The firm continues to believe that the company can generate mid-teen percentage revenue growth for the next several years, and it keeps an Outperform rating on the shares|
|FANG Diamondback Energy upgraded to Buy from Neutral at Sterne Agee|
|Price target is $54|
|AAPL Apple upgraded at Susquehanna|
|As previously reported, Susquehanna upgraded Apple to Positive from Neutral. The analyst upgraded shares due to the stronger than expected new iPhone launch, healthy backlog, and a likely China Mobile launch ahead. Price target raised to $625 from $440|
|BBRY BlackBerry upgraded to Hold from Sell at Canaccord|
|BlackBerry is being acquired by a Fairfax Financial led consortium for $9 per share|
|SBUX JPMorgan sees 'more modest' upside for shares of Starbucks|
|JPMorgan says shares of Starbucks are up 75% since bottoming on August 2, 2012. The firm sees continued upside to shares, but at a "much more modest" pace, and raised its price target for the stock to $80 from $74. JPMorgan keeps an Overweight rating on Starbucks|
Here are the strikes I am looking at for the open:
|Stock Ticker||Call/Put||Strike||Expiration||Closing Price||Entry Price|
Lets have a Great day!!